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3 years ago

Colombia has an absolute advantage in producing coffee relative to the United States.

Business

1 answer:

Diano4ka-milaya [45]3 years ago

6 0

Answer:

The correct answer is letter "C": Colombia has a comparative advantage in producing coffee relative to the United States.

Explanation:

A comparative Advantage is a person, company, or country's ability to produce a good or service at a lower cost of production than its competitors. Possessing a comparative advantage does not mean that one entity is absolutely better at producing a good or service than another.

Thus, Colombia has a comparative advantage in producing coffee relative to the United State because its lands and weather allows the growing of coffee crops better than in the U.S.

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3 years ago

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Gary is the founder of an animal shelter; he shares a special bond with animals. Hence, he prefers to employ people who care for

Harrizon [31]

Answer:

normative control

Explanation:

Normative control refers to using the values that the employees share as standards instead of using policies to influence the desired behaviors. According to this, the answer is that this is an example of normative control because Gary employs people that share certain values and behaviors and these become the standard to perform their jobs.

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3 years ago

Charles, the president of an IT company, is friends with Levi, the CEO of Cyber Industries, a company that develops and manufact

Akimi4 [234]

Answer: Option A

Explanation: In simple words, Ponzi scheme refers to a scheme in which a company deceit their earlier investor by paying them from the funds of recent investors in the form of profits.

In the given case, Levi deceited Charles by making him believe of a strategy that may or may not exist in his organisation. Thus, he will pay charles from the money that he will gain from the market after the announcement of the new processor.

Hence from the above we can conclude that the correct option is A.

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3 years ago

Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company

Monica [59]

Answer:

$91

Explanation:

Given the following information,

Direct materials per unit = $54

Direct labor per unit = $20

Variable overhead per unit = $6

Fixed overhead for the year = $462,000

For Absorption costing method, it includes all costs associated with production, including fixed and variable cost. The unit product cost is calculated using direct material, direct labor and total unitary manufacturing overhead.

Unitary cost = (Fixed overhead for the year / Units produced) + Direct materials per unit + Direct labor per unit + Variable overhead per unit

Unitary cost = ($462,000 / 42,000) + $54 + $20 + $6

Unitary cost = $11 + $54 + $20 + $6

Unitary cost = $91

Therefore, the product cost per unit is $91

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3 years ago

Klose Outfitters Inc. believes that its optimal capital structure consists of 60 percent common equity and 40 percent debt, and

Eduardwww [97]

Answer:

WACC 10.38305%

Explanation:

First we solve for the source of financing:

Expansion: 5,900,000

60% Equity: 3,540,000

Retained Earnins 2,000,000

then 1,540,000 will be common equity

40% debt: 2,360,000 It can raise up to 3,000,000 so it will be sufficient

D 2,360

E 1,540

RE 2000

V 5,900

Now we can solve for Weighted average cost of capital

$WACC = K_e(\frac{E}{E+RE+D}) + K_{re}(\frac{P}{E+RE+D}) + K_d(1-t)(\frac{D}{E+RE+D})$

Ke 0.15

Equity weight 0.261016949 (1,540,000 / 5,900,000)

Kre 0.12

RE Weight 0,338983 (2,000,000 / 5,900,000)

Kd 0.1

Debt Weight 0.4 ( 2,360,000 / 5,900,000)

t 0.4

$WACC = 0.15(0.261016949152542) + 0.12(0.338983050847458) + 0.1(1-0.4)(0.4)$

WACC 10.38305%

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3 years ago